1.A company shall not
re-open its books of account and not recast its financial statements, unless an
application in this regard is made by the Central Government, the Income-tax
authorities, the Securities and Exchange Board, any other statutory regulatory
body or authority or any person concerned and an order is made by a court of
competent jurisdiction or the Tribunal to the effect tható

i.the
relevant earlier accounts were prepared in a fraudulent manner; or

ii.the
affairs of the company were mismanaged during the relevant period, casting a
doubt on the reliability of financial statements:

Provided
that the court or the Tribunal, as the case may be, shall give notice to the
Central Government, the Income-tax authorities, the Securities and Exchange
Board or any other statutory regulatory body or authority concerned and shall
take into consideration the representations, if any, made by that Government or
the authorities, Securities and Exchange Board or the body or authority
concerned before passing any order under this section.

2.Without prejudice to
the provisions contained in this Act the accounts so revised or re-cast under
sub-section (1) shall be final.